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Accounting Theory And Standards
Environmental, Social And Governance Principles In Australian Publicly Funded Healthcare: An Extension Of Value-based Care.

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Research Domains
Commerce, Management, Tourism And Services
Accounting, Auditing And Accountability
Accounting Theory And Standards
Environmental, Social And Governance Principles In Australian Publicly Funded Healthcare: An Extension Of Value-based Care.

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Environmental, Social and Governance principles in Australian publicly funded healthcare: an extension of value-based care.

Aletha Ward¹, Mark E Holmes¹, Isabella Ward¹

¹School of Nursing and Midwifery, University of Southern Queensland, Qld, Australia.

Australian Health Review : a Publication of the Australian Hospital Association

|February 24, 2025

View abstract on PubMed

Summary

This summary is machine-generated.

Australia

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Area of Science:

Healthcare Management and Policy
Health Economics
Environmental Health

Background:

Australia's healthcare system relies on diverse funding, including activity-based, fee-for-service, and block funding.
Current funding models may face future budgetary challenges.
Value-based healthcare (VBHC) is emerging globally as a response to cost and outcome pressures.

Purpose of the Study:

To address the lack of a national strategy for value-based healthcare (VBHC) adoption in Australia.
To explore innovative approaches for enhancing VBHC implementation by examining external policy examples.
To propose the integration of Environmental, Social, and Governance (ESG) principles into Australian healthcare as an evolution of VBHC.

Main Methods:

Analysis of Australia's current healthcare funding mechanisms.

Review of global trends in healthcare system adoption of value-based healthcare (VBHC).

Examination of the Australian Securities Exchange's mandate for climate-related disclosures as a policy precedent.

Conceptual framework development for applying ESG principles to healthcare.

Main Results:

Existing Australian healthcare funding models may not be sustainable long-term.
The mandatory climate-related disclosures by the Australian Securities Exchange demonstrate a precedent for environmental accountability in corporate sectors.
Applying ESG principles offers a strategic pathway to evolve VBHC in Australian healthcare.

Conclusions:

Integrating Environmental, Social, and Governance (ESG) principles into Australia's healthcare sector is a strategic evolution of value-based healthcare (VBHC).
This integration can ensure fiscally responsible strategies for climate change mitigation and adaptation within healthcare.
A national framework for VBHC, incorporating ESG, is crucial for future healthcare sustainability and environmental accountability.